DELTA AIR LINES INC (DAL)
US2473617023 - Common Stock
We assign a fundamental rating of 4 out of 10 to DAL. DAL was compared to 23 industry peers in the Passenger Airlines industry. There are concerns on the financial health of DAL while its profitability can be described as average. DAL is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year DAL was profitable.
DAL had a positive operating cash flow in the past year.
Of the past 5 years DAL 4 years were profitable.
Of the past 5 years DAL 4 years had a positive operating cash flow.
1.2 Ratios
DAL has a better Return On Assets (5.97%) than 91.30% of its industry peers.
Looking at the Return On Equity, with a value of 36.23%, DAL belongs to the top of the industry, outperforming 91.30% of the companies in the same industry.
DAL's Return On Invested Capital of 10.06% is amongst the best of the industry. DAL outperforms 82.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.97% | ||
| ROE | 36.23% | ||
| ROIC | 10.06% |
ROA(3y)2.82%
ROA(5y)-0.27%
ROE(3y)22.91%
ROE(5y)-141.52%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 7.46%, DAL belongs to the top of the industry, outperforming 91.30% of the companies in the same industry.
DAL's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 10.29%, DAL is doing good in the industry, outperforming 78.26% of the companies in the same industry.
In the last couple of years the Operating Margin of DAL has remained more or less at the same level.
DAL has a Gross Margin (49.95%) which is in line with its industry peers.
DAL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.29% | ||
| PM (TTM) | 7.46% | ||
| GM | 49.95% |
OM growth 3YN/A
OM growth 5Y-1.27%
PM growth 3YN/A
PM growth 5Y-2.16%
GM growth 3Y23.18%
GM growth 5Y-0.72%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DAL is creating some value.
Compared to 1 year ago, DAL has more shares outstanding
The number of shares outstanding for DAL has been reduced compared to 5 years ago.
Compared to 1 year ago, DAL has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.30, we must say that DAL is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.30, DAL is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
The Debt to FCF ratio of DAL is 16.24, which is on the high side as it means it would take DAL, 16.24 years of fcf income to pay off all of its debts.
DAL's Debt to FCF ratio of 16.24 is fine compared to the rest of the industry. DAL outperforms 73.91% of its industry peers.
DAL has a Debt/Equity ratio of 1.21. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.21, DAL is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 16.24 | ||
| Altman-Z | 1.3 |
ROIC/WACC1.25
WACC8.07%
2.3 Liquidity
DAL has a Current Ratio of 0.40. This is a bad value and indicates that DAL is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.40, DAL is not doing good in the industry: 78.26% of the companies in the same industry are doing better.
A Quick Ratio of 0.35 indicates that DAL may have some problems paying its short term obligations.
DAL's Quick ratio of 0.35 is on the low side compared to the rest of the industry. DAL is outperformed by 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
The earnings per share for DAL have decreased strongly by -13.20% in the last year.
Measured over the past 5 years, DAL shows a small growth in Earnings Per Share. The EPS has been growing by 2.04% on average per year.
DAL shows a small growth in Revenue. In the last year, the Revenue has grown by 5.32%.
Measured over the past years, DAL shows a small growth in Revenue. The Revenue has been growing by 5.49% on average per year.
EPS 1Y (TTM)-13.2%
EPS 3YN/A
EPS 5Y2.04%
EPS Q2Q%-26.11%
Revenue 1Y (TTM)5.32%
Revenue growth 3Y50.3%
Revenue growth 5Y5.49%
Sales Q2Q%0.28%
3.2 Future
The Earnings Per Share is expected to grow by 1.91% on average over the next years.
Based on estimates for the next years, DAL will show a small growth in Revenue. The Revenue will grow by 2.72% on average per year.
EPS Next Y-1.37%
EPS Next 2Y7.9%
EPS Next 3Y9.21%
EPS Next 5Y1.91%
Revenue Next Year4.52%
Revenue Next 2Y5.13%
Revenue Next 3Y5.27%
Revenue Next 5Y2.72%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
DAL is valuated reasonably with a Price/Earnings ratio of 10.90.
86.96% of the companies in the same industry are more expensive than DAL, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.73. DAL is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 8.39, which indicates a very decent valuation of DAL.
Based on the Price/Forward Earnings ratio, DAL is valued a bit cheaper than the industry average as 78.26% of the companies are valued more expensively.
DAL is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.9 | ||
| Fwd PE | 8.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DAL is valued a bit cheaper than the industry average as 78.26% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DAL indicates a somewhat cheap valuation: DAL is cheaper than 73.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.52 | ||
| EV/EBITDA | 6.14 |
4.3 Compensation for Growth
DAL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.34
EPS Next 2Y7.9%
EPS Next 3Y9.21%
5. Dividend
5.1 Amount
With a yearly dividend of 0.99%, DAL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.99, DAL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, DAL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
5.2 History
The dividend of DAL decreases each year by -27.81%.
DAL has been paying a dividend for at least 10 years, so it has a reliable track record.
DAL has decreased its dividend recently.
Dividend Growth(5Y)-27.81%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
5.71% of the earnings are spent on dividend by DAL. This is a low number and sustainable payout ratio.
DP5.71%
EPS Next 2Y7.9%
EPS Next 3Y9.21%
DELTA AIR LINES INC
NYSE:DAL (12/20/2024, 8:04:44 PM)
After market: 61.26 +0.33 (+0.54%)60.93
+0.55 (+0.91%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners78.22%
Inst Owner Change2.86%
Ins Owners0.3%
Ins Owner Change-8.19%
Market Cap39.32B
Analysts84.44
Price Target75.92 (24.6%)
Short Float %5.04%
Short Ratio3.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
Dividend Growth(5Y)-27.81%
DP5.71%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)10.49%
Min EPS beat(2)-1.19%
Max EPS beat(2)22.18%
EPS beat(4)3
Avg EPS beat(4)8.25%
Min EPS beat(4)-1.19%
Max EPS beat(4)22.18%
EPS beat(8)5
Avg EPS beat(8)4.23%
EPS beat(12)8
Avg EPS beat(12)13.06%
EPS beat(16)9
Avg EPS beat(16)10.02%
Revenue beat(2)0
Avg Revenue beat(2)-1.29%
Min Revenue beat(2)-1.3%
Max Revenue beat(2)-1.28%
Revenue beat(4)1
Avg Revenue beat(4)-0.89%
Min Revenue beat(4)-1.3%
Max Revenue beat(4)0.02%
Revenue beat(8)4
Avg Revenue beat(8)2.24%
Revenue beat(12)8
Avg Revenue beat(12)2.79%
Revenue beat(16)11
Avg Revenue beat(16)3.69%
PT rev (1m)19.56%
PT rev (3m)23.44%
EPS NQ rev (1m)-0.91%
EPS NQ rev (3m)-1.25%
EPS NY rev (1m)0.1%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)-0.98%
Revenue NQ rev (3m)-0.9%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.9 | ||
| Fwd PE | 8.39 | ||
| P/S | 0.65 | ||
| P/FCF | 35.52 | ||
| P/OCF | 6.07 | ||
| P/B | 3.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.14 |
EPS(TTM)5.59
EY9.17%
EPS(NY)7.26
Fwd EY11.92%
FCF(TTM)1.72
FCFY2.82%
OCF(TTM)10.04
OCFY16.48%
SpS93.16
BVpS19.19
TBVpS-5.19
PEG (NY)N/A
PEG (5Y)5.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.97% | ||
| ROE | 36.23% | ||
| ROCE | 13.32% | ||
| ROIC | 10.06% | ||
| ROICexc | 11.07% | ||
| ROICexgc | 17.65% | ||
| OM | 10.29% | ||
| PM (TTM) | 7.46% | ||
| GM | 49.95% | ||
| FCFM | 1.84% |
ROA(3y)2.82%
ROA(5y)-0.27%
ROE(3y)22.91%
ROE(5y)-141.52%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y2.34%
ROICexc growth 3YN/A
ROICexc growth 5Y2.44%
OM growth 3YN/A
OM growth 5Y-1.27%
PM growth 3YN/A
PM growth 5Y-2.16%
GM growth 3Y23.18%
GM growth 5Y-0.72%
F-Score7
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 16.24 | ||
| Debt/EBITDA | 1.74 | ||
| Cap/Depr | 220.25% | ||
| Cap/Sales | 8.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.11% | ||
| Profit Quality | 24.67% | ||
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 1.3 |
F-Score7
WACC8.07%
ROIC/WACC1.25
Cap/Depr(3y)230.68%
Cap/Depr(5y)193.08%
Cap/Sales(3y)10.87%
Cap/Sales(5y)10.84%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-13.2%
EPS 3YN/A
EPS 5Y2.04%
EPS Q2Q%-26.11%
EPS Next Y-1.37%
EPS Next 2Y7.9%
EPS Next 3Y9.21%
EPS Next 5Y1.91%
Revenue 1Y (TTM)5.32%
Revenue growth 3Y50.3%
Revenue growth 5Y5.49%
Sales Q2Q%0.28%
Revenue Next Year4.52%
Revenue Next 2Y5.13%
Revenue Next 3Y5.27%
Revenue Next 5Y2.72%
EBIT growth 1Y5.22%
EBIT growth 3YN/A
EBIT growth 5Y4.15%
EBIT Next Year36.93%
EBIT Next 3Y19.39%
EBIT Next 5Y15.08%
FCF growth 1Y359.34%
FCF growth 3YN/A
FCF growth 5Y-9.17%
OCF growth 1Y29.24%
OCF growth 3YN/A
OCF growth 5Y-1.62%